CHAPTER 1 INTRODUCTION

1. INTRODUCTION

Our Indian capital markets have seen a lot of economic swing since last decade but still it has been flourishing with rapid transformations. Reforms are continuing and are bringing a lot of change in structure, process and governance of capital market. This is helping Indian capital market to gain an image of mature market place in the capital markets of the world. The working mechanism is now more flexible and transparent. The stock exchanges have been corporatized too. Other than this new instruments like index future, index options, derivatives etc. has been introduced.

Out of the major players showing their presence in the financial markets, Reliance Money is the one. Reliance Money is promoted by Reliance Capital; one of India's leading and fastest growing private sector financial services companies, ranking among the top 3 private sector financial services and banking companies, in terms of net worth. During past few years, it has picked up a considerable market share in the sector of financial services.

It is a one-stop-shop, providing end-to-end financial solutions (including mobile and web-based services). It has the largest non-banking distribution channel with over 10,000 outlets and 20,000 touch points spread across 5,165 cities/ towns; catering to the diverse needs of over 3 million existing customers.

During the internship, a research has been carried out on the on the topic A study of investor behaviour at Reliance Money. The objectives of the research were to create awareness about various products and services of the Reliance Money and to know about the investor behaviour and their preferences towards investment decisions and considerations. Other than this, the research included the study of position of Reliance Money in the market and its comparative position with other players.

Descriptive research was used in the whole project. The data was collected through meeting investors and potential investors in various areas of Chandigarh and questionnaires were filled on the basis of their responses. The collected data was analyzed using percentage method.

Various findings were derived which revealed perception and behavior of investors and potential investors toward financial market. Other than this, the attitude of investors was also observed towards Reliance Money. Based upon the findings, various suggestions were given with a view to improve the Position of Reliance Money in the market. As a result of research, it was concluded that Reliance Money has a good brand image but it still has to work upon in various areas to excel in the financial sector.

1.1 STATEMENT OF THE PROBLEM: To understand the perception and behavior of investors and potential investors this study has been conducted. In addition, attitude of investors towards Reliance Money has also been considered. So, research has been carried on the title An organizational study on Reliance Money

1.2 NEED OF THE STUDY: The need of the study arises because of the reason that a trainee must understand the company, its achievements and tasks, products and services and also to collect information about its competitors.

But the major focus was on making a customer profile for Reliance Money and to study the position of Reliance Money in the market as well as among its competitors. In addition, investors were to be made aware about various products and services offered by Reliance Money and checking the satisfaction level of present customers.

1.3 OBJECTIVES OF THE STUDY: y y y y To create awareness about the products offered by Reliance Money in the Market To know about the investment preference or style of investors To know about the awareness of demat account. To collect the real time information about preference level of customers using Demat account and their inclination towards various other brokerage firms e.g. Reliance Money, ICICI, Religare, Angel, Unicon, Sharekhan etc. y As an intern at Reliance Money, to know about response of investors towards Reliance Money y To know about the awareness of Reliance Money as a brand and services offered

To know about the availability of Reliance Money Franchisee

To know about the satisfaction level among customers of Reliance Money.

1.4 METHODOLOGY: We were supposed t o operat e fro m reliance mo ney madurai br anch. We were made aware about all t he product s. Reliance Mo ney was pro viding wit h a more st ress on t heir core product i.e. Demat account .

1.4.1 TARGETS: The t ime durat io n o f t he pro ject is 2 mont hs st art ing fro m 13t h Ju ne and ending on 5t h August . We were g iven t arget s t o be achieved dur ing t raining mo nt hs. The t arget s dur ing t he t raining mo nt h wer e: y y y A Demat Account eneral I nsurance Premium wort h Rs.50,000 Life I nsur ance Premiu m wort h Rs.1,00,000 4

I was supposed t o use t he dat abase provided by t he co mpany t o make co ld calls or by dir ect ly meet ing people t o get new leads

The quest io nnaire used is at t ached in appendix A.1

Wh ile making co ld calls, we need t o have: y y y y y ood Communicat io n Skills (Vo ice qualit y is clear and art iculat e) Persist ent and able t o bounce back fro m r eject io n ood organizat ional skills. Abilit y t o pro ject a t elephone perso nalit y (Ent husiasm, fr iend liness) Flexibilit y can adapt sit uat io ns. to differ ent t ypes o f client s and new

Fig 1.1 The cust o mer sales cycle

Pro blems faced while selling product s:

y y

Cust o mer dissat isfied wit h t he ser vices. People fear t hat Reliance Money Being a Pr ivat e co mpany and whet her a new ent rant could able t o sust ain or not .

Insurance means LIC for people. Clear ing such percept ion was a great challenge.

y y y

Past exper ience, word of mout h. Misguidance by agent s. People do not want insurance product s, because o f t he lack o f awareness about t he need o f it .

y y

Lack of knowledge and awareness about general and life insurance. People r isk appet it e is ver y low, so t hey are afraid o f mut ual fu nd as well.

People

relat e

t he

problems

of

mo bile

pho nes

of

Reliance

Co mmunicat ion wit h Reliance Money.

CHAPTER 2 COMPANY PROFILE

2. COMPANY PROFILE

2.1 INTRODUCTION Reliance Money is promoted by Reliance Capital; one of India's leading and fastest growing private sector financial services companies, ranking among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Money is a part of the Reliance Anil Dhirubhai Ambani Group.

It is a one-stop-shop, providing end-to-end financial solutions (including mobile and web-based services). It has the largest non-banking distribution channel with over 10,000 outlets and 20,000 touch points spread across 5,165 cities/ towns; catering to the diverse needs of over 3 million existing customers. Company is among the largest broking and distribution house of financial products and having share of more than 3% of total stock market volume at BSE & NSE. Reliance Money is a comprehensive electronic transaction platform offering a wide range of asset classes. Reliance Money endeavors to change the way investors transact in financial markets and avails financial services. It provides customers with access to Equity, Equity and Commodity Derivatives, Offshore Investments, Portfolio

Management Services, Wealth Management Services,

Investment Banking, Mutual Funds, IPOs, Life and General Insurance products and Gold Coins. Customers can also avail Loans, Credit Card, Money Transfer and Money Changing services. Reliance Capital Ltd. has also interests in asset management, life and general insurance, private equity and proprietary investments, stock broking and other financial services.

In addition to the home-grown portfolio of products and services that Reliance Money has to offer, Reliance Money also distributes a variety of third party financial products. It also assists millions of investors in creating customized individual portfolios based on their diverse investment needs and risk profiles

Reliance Money is the largest broker and distributor of financial products in India with the largest distribution network and almost over 3,174 employees. Money has increased its market share among private financial companies to nearly convenient & effective Anytime & anywhere financial transaction

2.2 VISION To build a global enterprise for all our stakeholders, and A great future for our country, To give millions of young Indians the power to shape their destiny, The means to realize their full potential

2.3 MISSION To create and nurture a world-class, high performance environment aimed at delighting our customers by providing endless financial products in all part of the country.

2.4 SUCCESS SUTRAS OF RELIANCE MONEY The success story of the company is driven by 8 success sutras adopted by it namely: 1. Trust 2. Integrity 3. Dedication 4. Commitment 5. Enterprise 6. Hard work and Team play 7. Learning and Innovation, 8. Empathy and Humility. These are the values that bind success with Reliance Money

2.5 ACHIEVEMENTS

2.5.1 LIST OF RECENT ACHIEVEMENTS

In two successive joint surveys by The Economic Times Brand Equity and ACNielsen, Reliance was recognized as Indias Most Trusted Mutual Fund.

India's largest e-broking house and Best Equity House 2009 - Awarded by Dun and Bradstreet 2009.

Reliance Money has been rated no. 1 by Starcom Worldwide for online security and cost effectiveness in 2007.

Reliance Money has been awarded Debutant Franchisor of the Year 2007 by Franchise India Holdings Ltd.

The company also walked away with seven other scheme prizes five of them being outright winners in the Gulf 2007 Lipper Awards. These included the Fund House of the Year by Lipper GCC as well as ICRA Online and the Most Improved Fund House by Asia Asset Management.

It also received the NDTV Business Leadership Award 2007 in the mutual fund category and runners up recognition as the Best Fund House in the Outlook Money-NDTV Profit Awards.

In addition, the company received the coveted CNBC Web18 Genius of the Web distinction for the Best Mutual Fund Website in the country. RCAM was awarded the India Onshore Fund House 2008 instituted by the Asian Investor magazine.

The company also won the India Equities award in the 5-yearPerformance category.

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2.5.2 OTHER ACHIEVEMENTS

Reliance Money generated revenues of Rs. 35 billion (US$ 767 million) for the year March 31, 2009 as against Rs. 24 billion of the corresponding previous period, an increase of 48%. It also achieved a net profit of Rs. 368 million (US$ 8 million) for the same period, as against a net profit of Rs. 1 million for the corresponding previous period

Reliance Money has tied up with global partners like Reuters, Vasco, Valcambi, Webaroo, optionsXpress Holdings, Goldride Securities, World Gold Council, Wincor Nixdorf and DBS Vickers to facilitate better access to wider world class choices to its customers

It is amongst the leading Mutual fund distributors of the country distributing products of 20 AMCs. It is the largest private sector partner for Western Union Money Transfer in India

To further improve its position in the money changing and money transfer business, Reliance Money has acquired a significant share holding in Wall Street Finance Ltd, a leading provider of money changing and money transfer services in the Country

Reliance Money has tied up with Kuoni India and plans to retail its forex products/services through the national network of over 70 Kuoni outlets

Reliance Money has tied up with India Post and World Gold Council to sell gold coins through the post office network across the country

Reliance Money has obtained Category I Merchant Banking License from the Securities and Exchange Board of India. This new license allows Reliance Money to provide a wide range of investment banking services such as Issue Management, Underwriting, Private Equity Advisory/ Syndication and Corporate Finance services in India

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 Reliance Money is taking its first steps into the Commodities Exchange business and is in the process of acquiring a 15 per cent stake in Hong Kong Mercantile Exchange (HKMEx). With this holding, Reliance Money becomes the second-largest shareholder in the commodity exchange and will have a board membership. Reliance Money is the first Indian firm to acquire a stake in an international exchange

It has also obtained approval from the Ministry of Consumer Affairs for acquiring 10% stake in the National Multi-Commodity Exchange of India Ltd. (NMCE)

FIG 2.1: STRUCTURE OF RELIANCE GROUP 12

FIG 2.2 ORGANIZATIONAL STRUCTURE

13

WORKING AT BRANCH LEVEL:

FIG 2.3 BRANCH OFFICE HIERACHY

14

2.6 HOW RELIANCE MONEY SCORED OVER OTH ERS? 1. Two way aut hent icat io n: Reliance o ffers it s cust omer s wit h a t o ken (an elect ronic gadget ) t hat generat es a password, which are a t hir d level of secur it y in addit io n t o t he cust omer log in and a passwo rd provided. T he password generat ed by t he t oken is va lid only fo r a per iod o f 20 seco nds. I f t he web page expires, for t he fresh log in, a new password generat ed by t he t oken has t o be keyed in by t he cust omer. 2. Lowest brokerage: Reliance o ffers t he lowest brokerage o f 1 pais a which is ver y less wit h respect to t he ot her DPs in t he mar ket . 3. User fr iendly so ft ware: T he port al o ffered is ver y eas y t o underst and and use. 4. Forex and o ffshore invest ment : Reliance provides t he o ffsho re facilit y which no ot her AMC is providing in t he mar ket . 5. Bet t er research and news: Reliance o ffers news fro m t he DO W JONES and REUTERS. Seeking t o br ing shar e t rading clo ser t o consumer s just like AT Ms, Reliance Capit al's st ock brokerage ar m Reliance Money launched I nt ernet t rading ser vices t hrough web- enabled ret ail kio sks.

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2.7 SWOT ANALYSIS

STRENGTHS: y One of Indias leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth.

It is Indias first insurance company to be awarded the ISO 9001:2000 certification across all functions, processes, products and locations pan-India. The quality assurance provides an edge over other players.

Company issued 36.57 Lac policies during the year as compared to 14.60 Lac in the previous year thereby registering a growth of 150%.

RGIC has been able to give highest ROI of 11.27% in last five years. The net worth has doubled to Rs.4.94 billion from last years Rs.2.59 billion.

Excellent outreach with a large distribution network. It has 200 branches across 171 cities and over 20,000 intermediaries. The setup provides the company is very strong and very effective distribution network, and consequently a strong penetration in the market.

Experts and research team to make strategies and products for company as well as clients base to resolve the problem.

Capture the 17% of the Private Sector Share & 7% share of the General Insurance Industry.

16

Reserves and Surplus has increased five times to Rs.4.998 billion from Rs.1.04 billion previous years.

The Company has earned Rs.1034 crore of New Premium Business in Financial Year 2008 which is 41% share of the Private Sector Industry & 33% of the Industry as whole.

Company is ranked number one in the New Premium Business in Financial Year 2008. Other than this, it maintains a good database of it existing and potential customer, has a brand image and low pricing strategy

Reliance Money unlike other brokering houses has introduced a new

prepaid

system of brokerage for the share trading in which it provides the lowest form of brokerage charged from an investor.

WEAKNESSES: y Sudden expansion in year 2009 by establishing more than 125 branches has increased operations and administration expenses due to which losses incurred.

y Dependence on fellow subsidiaries for various supplies. Extra control or interference from fellow subsidiaries.

y Due to the emphasis on recruiting young people in the company, staff is inexperienced.

y Clientage is not so loyal as compared to the clientage of other competing companies in the same industry.

17

y The phenomenon of job hopping is very common in the company. So, the problem of loyalty towards the company on behalf of the employees is a major problem.

OPPORTUNITIES:

y IRDA has removed controls on pricing in General Insurance business with effect from 1st January, 2008. IRDA had notified that except for Motor Third Party risks, all other new insurances and renewals effective on or after 1st January, 2008, insurers shall be free to quotes rates of premium in accordance with file and use guidelines.

y General insurance industry in India has grown at 15% CAGR in terms of gross premium collection.

y The company has moved to 3rd position amongst Private Sector Insurers in Financial Year 2008 & is ranked 7th amongst the Industry with 14 General Insurance players.

y In India, there is still a lot more market to be tapped which is getting supported by increasing spending and thereby saving of people.

y The mindset of people has also started changing. Now, they consider trading as a good source of earning.

y The entire workforce consists of mostly youngsters, which means they can be encouraged and motivated to do good work because they have a long way to go and most of them are eager to climb the ladder.

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THREATS:

y New Entrants -Future General India Life Insurance Company Limited -Sep. 2007 -IDBI Fortis Life Insurance Company Ltd. Dec 2007 -Bharti Axa General Insurance Company Ltd. -June 2008

New joint ventures (JVs) by industry giants - Max India forms JVC with Bupa Finance to foray into Health Insurance -Shriram Group is to enter General Insurance Market

Stiff competition from existing players in the market

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CHAPTER 3 FUNCTIONS OF VARIOUS DEPARTMENTS

20

3.1 MARKETING DEPARTMENT:

3.1.1 PRODUCT OFFERING: Reliance Money currently deals in the following financial products:

TRADING PORTAL: Online trading refers to buying and selling of the shares/stocks/contracts/bonds with the use of internet. In this shares are not issued in physical form rather they are transferred in the dematerialized form in the Demat account directly . DEMAT ACCOUNT There are many broking houses doing business in India and they charge a brokerage on every transaction made online or offline. (Buying and Selling are treated as separate transaction). Reliance Moneys advantage over others is that its charging the lowest brokerage in the market which is just 1 paisa on every executive trade irrespective of the volume traded. Reliance Money, the brokerage and distribution arm of Reliance ADA Group, aims to tap investors in the smaller towns and cities through a flat fee structure. The new wonder is Reliance Money's pre-paid card for stock market brokerage. Reliance Money, the financial services division of Anil Dhirubhai Ambani Group-promoted Reliance Capital, is bringing to the market pre-paid cards in denominations of Rs500, Rs.1,000, Rs.2,500, Rs.5,000 and Rs.10,000. It Targets low level of retail penetration in India - less than 3 per cent of household financing savings makes it into equity markets.

Reliance Money Demat Account Holders can trade in Equities: Equity investment generally refers to the buying and holding of shares of stock on a stock market by individuals and funds in anticipation of income from dividends and capital gain as the value of the stock rises. It also sometimes refers to the acquisition of equity (ownership) participation in a private (unlisted) company or a startup (a company being created or newly created).

21

COMMODITIES: A single platform to trade on both of the major commodity exchanges i.e. NCDEX and MCX. In addition In-house research desk shall provide research reports on all major commodities which shall enable in getting views for trading and diversify clients holdings. Trade Execution assistance is also provided to clients.

OFFSHORE INVESTMENTS: Offshore investment is the keeping of money in a jurisdiction other than one's country of residence. Offshore jurisdictions are a commonly accepted solution to reducing excessive tax burdens levied in most countries to both large and small scale investors alike. The advantage to this is that such operations are both legal and less costly than the solutions offered in the investor's country - or "onshore".

Offshore solutions are accessible to anyone who can meet the minimum investment amount or pay the obligatory fees required to open such an entity. Another reason why 'offshore' investment is superior to 'onshore' investment is because it is less regulated, and the behavior of the offshore investment provider, whether he be a banker, fund manager, trustee or stock-broker, is freer than it could be in a more regulated environment. Reliance Money has already tied-up with CMC Capital Plc UK to offer offshore Investment products to Indian consumers as per guidelines.

Reliance Money share trading account. Reliance Money unlike other brokering houses has introduced a new prepaid system of brokerage for the share trading in which it provides the lowest form of brokerage charged from an investor.

22

Table 3.1 Trading Plans Offered By Reliance Money

Validity Target Investor Access Fee (Rs.) earlier) Time Validity Small Large Large Large 500 1000 2500 5000 12 months 2 months 6 months 12 months 12 months

(whichever

is

Turnover Limit Non-delivery Turnover Rs. 2 Lac Rs. 90 lac Rs. 2.7 Cr Rs. 6.3 Cr Rs. 10 Lac Rs. 30 Lac Rs. 70 lac Delivery Turnover

or

Turnover Validity Rs. 1 lac Rs. 1 Cr Rs. 2 Cr Rs. 7 Cr

or or or or

Large

100000

or

Rs. 20 Cr

Rs. 18 Cr

Rs. 2 Cr

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Following are also the main features of this share trading account provided by Reliance money:-

1. Flexibility to access reliance money services in multiple ways through Internet, Transaction kiosks, Call and transacts or seeks assistance through Business partners.

2. This is a safeguarded account as reliance money provides an electronic token that flashes a unique security number in every thirty two seconds. This number works as a third level password (including the login ID and Password) keeping the account sage from any unauthorized access.

3.

Flexibility to transact in Equity, Equity and commodity Derivatives, Offshore

investments, mutual funds, IPOs, Life insurance and General Insurance either through online or through channel partners.

4. With the help of this A/c investors can access to their banking, trading and Demat accounts without the hassle of writing cheques. Reliance money had tied up with UTI, HDFC and IDBI bank to link this share trading account for the investors.

These were some of the features of Reliance money share trading account. A customer can do the share trading through trading kiosks installed by Reliance Money, through net, through business associates of R-Money.

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3.1.2 COMPETITORS OF RELIANCE MONEY IN THE MARKET

There is huge number of players existing in the market. Some of the main players have been briefed below, RELIGARE

History of Religare Securities Ltd. Religare Securities Limited, a Ranbaxy Promoter Group Company, was founded by late Dr. Parvinder Singh (CMD Ranbaxy Laboratories Limited), with the vision of providing integrated financial care driven by the relationship of trust & confidence. It is a diversified financial services group with a pan-India presence and presence in multiple international locations, Religare Enterprises Limited ("REL") offers a comprehensive suite of customer-focused financial products and services targeted at retail investors, high net worth individuals and corporate and institutional clients.REL, along with its joint venture partners, offers a range of products and services in India, including asset management, life insurance, wealth management, equity and commodity broking, investment banking, lending services, private equity and venture capital. REL, through its subsidiaries, has launched India's first holistic arts initiative - with a gallery - as well as the first SEBI approved film fund, which is an initiative towards innovation and spotting new opportunities for creation and maximization of wealth for investors.

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Presently, the company is headed by Mr. Sunil Godhwani who is CEO and managing director of the company. It has its registered and corporate office in New Delhi and it operates from seven domestic regional offices, 43 sub-regional offices, and has a presence in 498 cities and towns controlling 1,837 business locations all over India with a workforce of over 9500 people. Pursuant to expansion of REL's business, the company has grown from largely an equity trading company into a diversified financial services company. With the addition of RHH the REL group now operates out of multiple global locations, other than India, (the UK, the USA, Brazil, South Africa, Dubai and Singapore). Among the leading service provider in Capital Market In a span of less than five years of its retail operations, RSL recorded a healthy growth rate both in business volumes and profitability. In recent times, the market share has increased from 3.46% in Q4 FY08 to 3.86% Q1 FY09. Major portion of earning were contributed by broking related activities and for the first quarter of FY09, it accounted for 40% of revenues. Quarterly Total Revenue recorded at Rs. 2,887.49 mn, EBIDTA at Rs. 1,184.17 mn and Profit after tax at Rs. 36.68 mn.

ANGEL BROKING

Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel has emerged as one of the most respected Stock-Broking and wealth management companies in India. With its unique retail-focused stock trading business model, it is committed to providing Real Value for Money to all its clients.

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Angel broking ltd. already has a good presence in India and offers world-class financial planning and a wide range of wealth management products to mass affluent and affluent customer segments. Angel Broking limited provides a complete range of financial products and services that include equity broking (internet based online trading as well as offline trading), financial planning, insurance, investment products, equity research, demat account and more. It is one of the leading and professionally managed stock broking firm involved in quality services and research. The membership of the company with The Stock Exchange Mumbai was originally in the name of Mukesh R. Gandhi, which was eventually turned into a corporate membership in the name of Angel Broking Limited. Angel Broking Limited is managed by Mr. Dinesh Thakkar, founder chairman and managing director and he is well supported by Mr. Mukesh Gandhi, a fifteen years veteran in the market. The group is well supported by a professional and qualified research team and efficient operations and back office team, which comprises of highly dedicated and qualified individuals. It has an in-house, state of art research department. Angel Broking Limited is primarily into retail stock broking, with a customer base of retail investors, which has been increasing at a CAGR of 100% every year. The company has huge network sub-brokers in Mumbai and other places outside Mumbai, registered with SEBI, who act as Chanel partners for the company. The company presently has total staff strength of around 150 employees who are spread accordingly across the head office and all the branches. It has also empowered its physical presence throughout India through various strategies which it has been adopting efficiently and effectively over a period of time, like opening up of branches at various places, tie-ups with various agencies and sales agents, buy-outs of smaller regional outfits and appointment of sub- brokers and franchisees. Moreover, Angel has been tapping and including high net worth and self-employed individuals which has vast array of clients.

27

Angel has always strived in the direction of delivering ultimate client satisfaction and developing stronger bonds with its customers and chose partners. Angel has a vision to introduce new and innovative products and services regularly. Moreover, Angel has been one among the pioneers to introduce the latest technological innovations and integrate it efficiently within its business.

KARVY

Karvy Consultants Limited was established in 1982 at Hydrabad. It was established by a group of Hydrabad-based practicing Chartered Accountants. At initial stage it was very small in size. It was started with a capital of Rs. 1,50,000.

In starting it was only offering auditing and taxation services. Later, it acts into the Registrar and Share transfer activities and subsequently into financial services and other services like Financial Product Distribution, Investment Advisory Services, Demat Services, Corporate Finance, Insurance etc.

All along, Karvys strong work ethics and professional background leveraged with Information Technology enabled it to deliver quality to the individual. A decade of commitment, professional integrity and vision helped. Karvy achieving a leadership position in its field when it handled largest number of corporate and retail that proved to be a sound business synergy.

Today, Karvy has access to millions of Indian shareholders, besides companies, banks, financial institutions and regulatory agencies. Over the past one and half decades, Karvy has evolved as a veritable link between industry, finance and people. An ISO 9002 Company, Karvys commitment to quality and retail reach has made it an Integrated Financial Services Company. 28

Karvy ranks among the top player in almost all the fields it operates. Karvy Computershare Limited is Indias largest Registrar and Transfer Agent with a client base of nearly 500 blue chip corporate, managing over 2 crore accounts. Karvy Stock Brokers Limited, member of National Stock Exchange of India and the Bombay Stock Exchange, ranks among the top 5 stock brokers in India. With over 6,00,000 active accounts, it ranks among the top 5 Depositary Participant in India, registered with NSDL and CDSL. Karvy Comtrade, Member of NCDEX and MCX ranks among the top 3 commodity brokers in the country. Karvy Insurance Brokers is registered as a Broker with IRDA and ranks among the top 5 insurance agent in the country. Registered with AMFI as a corporate Agent, Karvy is also among the top Mutual Fund mobilizer with over Rs. 5,000 crores under management. Karvy Realty Services, which started in 2006, has quickly established itself as a broker who adds value, in the realty sector. Karvy Global offers niche off shoring services to clients the US.

Karvy has 575 offices over 375 locations across India and overseas at Dubai

and New

York. Over 9,000 highly qualified people staff The Company adds 5 new offices every month to the companys ever growing national network in every nook and corner of the country. The company service over 16 million individual investors, 180 corporate and handle corporate disbursements that exceed Rs.2500 Crores.

29

MOTILAL OSWAL

Motilal Oswal Securities Ltd. (MOSL) was founded in 1987 as a small sub-broking unit, with just two people running the show. Focus on customer-first-attitude, ethical and transparent business practices, respect for professionalism, research-based value investing and implementation of cutting-edge technology has enabled us to blossom into an almost 2000 member team.

Today it is a well diversified financial services firm offering a range of financial products and services such as Wealth Management, Broking & Distribution, Commodity Broking, Portfolio Management Services, Institutional Equities, Private Equity, Investment Banking Services and Principal Strategies.

It has a diversified client base that includes retail customers (including High Net worth Individuals), mutual funds, foreign institutional investors, financial institutions and corporate clients. We are headquartered in Mumbai and as of June 30th, 2009, had a network spread over 555 cities and towns comprising 1,308 Business Locations operated by our Business Partners and us. As on June 30th, 2009, we had 5,57,373 registered customers.

Motilal Oswal Securities Ltd. enters 'Limca Book of Records' for creating India's largest dealing room in Mumbai. It was 'Rated No.1 Best recommendations Mid & Small Caps' and won awards in 3 out of 4 categories at the Starmine India Broker Rankings 2009 from Thomson Reuters

30

KOTAK SECURITIES

Kotak Securities Limited, a 100% subsidiary of Kotak Mahindra Bank, is the stock broking and distribution arm of the Kotak Mahindra Group. Kotak Mahindra is one of India's leading financial institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate. Kotak also offers stock broking through the branch and Internet, Investments in IPO, Mutual funds and Portfolio management service.

Kotak Mahindra is one of India's leading financial conglomerates, offering complete financial solutions that encompass every sphere of life. The group has a net worth of over Rs. 5,609 crore, employs around 17,100 people in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across 344 cities and towns in India and offices in New York, London, Dubai, Mauritius and Singapore. The Group services around 3.6 million customer accounts. Kotak Securities has 195 branches servicing more than 2, 20,000 customers and coverage of 231 Cities. Kotaksecurities.com, the online division of Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual Fund Investments.

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INDIA INFOLINE

India Infoline Ltd is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). The India Infoline group, comprising the holding company, India Infoline Ltd and its subsidiaries, straddles the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits and other small savings instruments to loan products and Investment banking. India Infoline also owns and manages the websites.

India Infoline Limited is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and Portfolio Management Services. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL as a depository participant, providing a one-stop solution for clients trading in the equities market. It has recently launched its Investment banking and Institutional Broking business

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3.2 HUMAN RESOURCE:

Human resource management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. In simple words, HRM means employing people, developing their capacities, utilizing, maintaining and compensating their services in tune with the job and organizational requirement.

FIG 3.1 : OVERALL HR FUNCTIONS OF RELIANCE MONEY:

COMPENSATION & BENEFITS

ADMINISTRATION

HR OPERATIONS

HUMAN RESOURCE MANAGEMENT

RECRUITMENT PERFORMANCE MANAGEMENT SYSTEM

EMPLOYEE ENGAGEMENT

TRAINING & DEVELOPEMENT

33

3.2.1 ADMINISTRATION:

EMPLOYEE ADMINISTRATION: Supports central and constantly accessible administration for personnel data, to give companies an increasingly critical competitive advantage. Companies can manage all modern personnel administration tasks with this capability. The personnel administration functionality relieves users from routine administrative activities, which are costly and time-consuming, while simultaneously supporting users in demanding planning activities. Another advantage of this capability -especially for international corporations -- is the various country-specific versions, which are created in accordance with the respective country-specific features. By using countryspecific versions, companies can set up personnel administration as a standard system in different countries.

REASSIGNMENTS & STATUS CHANGES: Supports basic personnel procedures within master data administration, such as performing transfers, performing organizational reassignments, and entering the data required for employees who leave the enterprise. Employee data change is checked automatically, and affected data is updated accordingly. This guarantees transparent and consistent data retention at all times. When the employee status is changed, for eg. From exempt to nonexempt, a whole new set of rules is applied to the employee, such as for compensation, working time, and so on. SKILLS INVENTORY: Enables organizations to develop an inventory of skills and competencies and manage them effectively. EMPLOYEE PROFILES: Supports employee profiles, which reflect all employee competencies, skills, and qualifications. OPERATIONAL REPORTING: Includes more than 400 standard and statutory reports, all easy to access and execute. These reports provide a straightforward method for obtaining current employee data at any time. The standard query tool can generate complex business reports, statistics, and ranked lists, making it ideally suited for master-

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data and line-item reporting. Creating custom reports can simply be done with a few mouse clicks: Users define the requirements and use Drag & Drop to select the appropriate fields. Additionally, my SAP HR includes a wide range of predefined and adjustable queries. The Ad Hoc Query tool generates comprehensive business reports, statistics, and ranked lists. A company can use Ad Hoc Query to access operational data and create reports that meet the company's specific needs. 3.2.2 RECRUITMENT: Recruitment refers to the process of attracting, screening, and selecting qualified people for a job at an organization or firm. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies. The recruitment industry has five main types of agencies: employment agencies, recruitment websites and job search engines, "headhunters" for executive and professional recruitment, niche agencies which specialize in a particular area of staffing and in-house recruitment. The stages in recruitment include sourcing candidates by advertising or other methods, and screening and selecting potential candidates using tests or interviews. PROCESS OF RECRUITMENT (RELIANCE MONEY): Proper approval: The immediate head of the corporate should approve the candidate application through erecruitment portal to the regional HR manager. COST OF RECRUITMENT: The growth of the e-recruitment industry has been fuelled by the adoption of technology and internet penetration. Organizations have cut costs by almost 80% over traditional recruitment modes by moving over to the online recruitment process. Recruiting online is ideally more focused, fast paced, effective, and gives higher ROI on administrative expenses. The costs associated with manual recruitment can become quite excessive, partly because of the candidates that are produced.

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NOTICE PERIOD: Notice period is the time an employer and/or employee need to give the other if they decide to separate before normal retirement age. If a person does not serve the notice period given in his terms and conditions of Employment then he needs to pay for the short period.

For example: If the notice period is 3 months and a person wants to leave after2 months then he needs to pay back the Company the amount equaling to his 2 months salary. The Industrial disputes Act, 1947 in India first introduced the concept of Notice Period or Payment in lieu of Notice Period to protect the workers. This system has a very good base since it protects the employee from immediate loss of pay due to loss of job and also protects the Employer by giving it time to find proper replacement and enabling induction and handing over of charge. This Notice Period in general is not specific to a particular department like HR or Marketing but is applicable for all employees on Regular rolls.

TURN AROUND TIME: The time required to complete an assignment or job. For example, an airline attempts to minimize the turnaround time required to get a plane back in service after a completed flight. A short turnaround time results in more trips and greater revenue. FIG 3.2 PROCESS OF RECRUITMENT Proper approval

Cost of recruitment

Notice period

Turn around time 36

TOOLS OF RECRUITMENT: EMPLOYEE REFERENCE: When another business calls and asks you for a reference concerning a former employee, you need to be especially careful concerning the information you give out. Former employees can sue you if your references prevent them from obtaining a job. Employers can be liable or defamation, which may be called "slander" if the communication is verbal and for "libel" if the communication is written. Awards to the former employee winning a defamation suit may include money for lost earnings, mental anguish, and pain and suffering. Since employment references are important when making a hiring decision, the law will usually protect an employer who is acting in good faith and discloses information that is true to a potential employer. An employer not acting in good faith makes false statements or gives information obtained from somewhere else and has not made an effort to make sure the information is true. Employers who act in good faith are free to state facts or opinions which would otherwise be defamatory. NETWORKING: Network Recruitment's unique strategy provides support to both client and candidate. Regular communication with the candidate during the initial period, after an offer has been extended, ensures candidate commitment. Further interaction with the client and candidates during the first three critical months of employment facilitates smooth transition into the organization. A well established management team, flexible solutions and continually expanding database of exceptional candidates make Network Recruitment the obvious first choice for recruitment needs. CAMPUS RECRUITMENT: Campus Recruitment or Campus Placement has become a popular and commonly used method for selecting personnel in an organization. In Campus Recruitment, Companies / Corporate visit some of the most important Technical

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and Professional Institutes in an attempt to hire young intelligent and smart students at source. The most significant fact about Campus Recruitment is that instead of the job seekers approaching employers, the employers come to the most suitable prospective candidate with a job offer. It is common practice for Institutes today to hire a Placement Officer who coordinates with small, medium and large sized Companies and helps in streamlining the entire Campus Recruitment procedure. JOB PORTALS: Job Portals are the most popular and widely used tool by companies and recruitment teams to facilitate the smooth flow of recruitment process in the competitive world. Job Portals provide a platform for the employers to meet the prospective employees. The job aspirants can register in job Portals by creating a user ID. Job Portals allow users to submit and edit their resumes and apply for specific jobs at companies of their choice. Once registered, job aspirants get e-mail job alerts and can respond to job related questions from the employer companies. The companies have the choice to search for their ideal candidate from the resume database using various options and parameters available in the job Portals. CONSULTANT: A consultant (from the Latin consultare means "to discuss" from which we also derive words such as consul and counsel) is a professional who provides advice in a particular area of expertise such as management, accountancy, the environment, entertainment, technology, law, human resources, marketing, emergency management, food production, medicine, finance, life management, economics, public affairs, communication, engineering, sound system design, graphic design, or waste management. A consultant is usually an expert or a professional in a specific field and has a wide knowledge of the subject matter. A consultant usually works for a consultancy firm or is self-employed, and engages with multiple and changing clients. Thus, clients have access to deeper levels of expertise than would be feasible for them to retain in-house, and may purchase only as much service from the outside consultant as desired.

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3.2.3 COMPENSATION & BENEFITS: Employee benefits typically refers to retirement plans, health life insurance, life insurance, disability insurance, vacation, employee stock ownership plans, etc. Benefits are increasingly expensive for businesses to provide to employees, so the range and options of benefits are changing rapidly to include, for example, flexible benefit plans. Compensation includes topics in regard to wage and/or salary programs and structures, for example, salary ranges for job descriptions, merit-based programs, bonus-based programs, commission-based programs, etc. 3.2.4 HR OPERATIONS: o Handling Recruitment activities by coordinating with Resourcing Vendors as per requirement. o Responsible for Post Selection activities viz; Offer, Joining Formalities, Induction etc. o Actively involved with Training& Development programs by supporting Technical Personnel in Presentations and Preparation of Training calendar and modules. o Monthly HR Reporting of Key Indicators like Headcount, Acquisition, Attrition etc. o Handling HR Helpdesk by Serving as an S.P.O.C for entire employee relations issues/ grievance and provide guidance and intervention, as needed, to resolve personnel issues. o Assisting seniors in integral functions viz; Performance Management, Payroll, OD Intervention, Employee Engagement, Internal Surveys related.

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o Compensation Benefits, Skill Mapping for T.N.A, administering Information System etc.

3.2.5 PERFORMANCE MANAGEMENT SYSTEM: Performance management includes activities to ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product or service, as well as many other areas. Performance Management as referenced on this page is a broad term. 3.2.6 TRAINING & DEVELOPMENT: Reliance places the highest importance on the training and development of its people and each business within the Reliance Group provides its own program of job-specific training for all employees. In addition to this, a number of cross-Group development and leadership initiatives, such as the Reliance Academy, are provided to encourage the spread of best practice and new, more effective ways of working. The company's Management Development Programs are also available to both middle and senior management across the Group and have proved a valuable tool for enhancing core management skills, values and behaviors.

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Training

Soft skills

Product skills

FIG 3.3 TYPES OF TRAINING SOFT SKILLS: Soft Skills Training is an important part of Management Training as it has a significant impact on Personality Development. The Soft Skills Training conducted by MMM Training Solutions focuses on elements of Training and Development that require changes in behavior and thinking. Soft Skills as opposite to hard skills (such as technical skills), greatly impacts the personality development of employees. Organizations today recognize that the professional development of their employees play an important part in maintaining relationships with their customers and developing a successful business. Organizations that endeavor to be on the path of continuous learning will often find that upgrading the 'soft skills' of their workforce is a necessary part of business. It not only helps improve service but also shows the interest that an organization has in the professional development of their employees, which in turn leads to higher employee retention.

3.3 FINANCE DEPARTMENT: The Finance department mainly deals with receivable and payments of the company. The purchase, production or sales cannot be successful unless otherwise there is a proper accounting system. Accounting department prepares the financial statement of the

41

company which helps the creditors, shareholders and other interested parties to measure the profitability of the company.

ACCOUNTING PROCEDURE: Accounting of operation in a finance company would basically in value maintenance of proper books of accounts such as cash registers, ledger etc. The inputs are receipts, payments, and journal vouchers of other supporting documents. All the transactions are pre-defined in the system so that whenever an input is processed the system generates the necessary entries and updates the records from the general ledger system, summary of receipts, payment of trail balance and other financial statement are extracted and reconciliation with the books are alone practically. The company closes it accounts annually and the auditors of the company properly audit the reports. The same are submitted to the board of their approval.

TABLE 3.2 PROFIT AND LOSS ACCOUNT

Name INCOME : Sale of Electrical Energy Other Income + Stock Adjustment Total Income

2010-2011

2009-2010

319.90 2.92 0.00 322.82

317.28 4.08 0.00 321.36

EXPENDITURE : Cost of Fuel and Power Purchased 271.72 269.53

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Generation & Distribution Expenses + Employee Cost + Administration expenses + Miscellaneous Expenses + Less: Preoperative Expenditure Capitalized Profit before Interest, Depreciation & Tax Interest & Financial Charges + Profit before Depreciation & Tax Depreciation Profit Before Tax Tax Profit After Tax

6.62 22.24 4.48 6.73 0.00 11.03 4.81 6.22 3.54 2.68 1.63 1.05

7.42 22.04 4.26 5.31 0.00 12.80 2.26 10.54 3.11 7.43 2.17 5.26

Adjustment below net profit + P & L Balance brought forward Appropriations + P & L Balance carried forward

0.00 4.31 -14.62 19.98

0.00 0.02 0.97 4.31

Equity Dividend Preference Dividend Corporate Dividend Tax Equity Dividend (%)

0.42 0.00 0.07 10.00

0.53 0.00 0.09 12.50

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Earning Per Share (Rs.) Book Value

2.32 192.98

12.22 192.46

Extraordinary Items +

-0.06

1.34

TABLE 3.3 BALANCE SHEET Name SOURCES OF FUNDS :

Share Capital + Reserves & Surplus + Total Shareholders Funds

4.23 80.07 84.30

4.23 79.85 84.08

Secured Loans + Unsecured Loans + Service Line & Security Deposits from Customers Total Debt

40.34 16.51

28.90 5.76

2.63 59.48

2.32 36.98

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Total Liabilities

143.78

121.06

APPLICATION OF FUNDS :

Gross Block + Less: Accumulated Depreciation Net Block Capital Work in Progress

125.22 27.44 97.78 10.64

93.49 24.52 68.97 11.00

Investments +

5.17

4.05

Current Assets, Loans & Advances Inventories + Sundry Debtors + Cash and Bank Balance Loans and Advances + Less: Current Liabilities & Provisions Current Liabilities + Provisions + 74.87 10.11 77.30 7.89 8.18 85.05 12.05 9.22 8.60 86.36 16.56 9.51

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Net Current Assets

29.52

35.84

Miscellaneous Expenses not w/o +

0.67

1.20

Total Assets

143.78

121.06

Contingent Liabilities +

1.25

0.46

CHAPTER 4 CONCLUSION

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5.1 Conclusion As students, many of us are completely ignorant of the work cultures of various corporate organizations. SIP is an attempt to provide us a practical corporate exposure where we work in certain corporate organizations as interns. Working with Reliance Money is a nice opportunity by which I can explore my knowledge. A good brand is always welcomed. In general, people are more conscious with the brand. So they go for the brand and are ready to spend some extra bucks for the quality.

The Brand image of Reliance Money is good in market but according to customer satisfaction reviews the company have to provide better services and proper follow up

Reliance Demat Account is better than other Demat account. Reliance Money has good return of investment too. It also provides a better sense of security with the use of special type of key, security token.

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At last it can be concluded by that Reliance Money is still growing in the financial sector and has a huge potential for the coming times. . But this project also includes prospective investors, who can invest in stock market but presently does not invest in these markets. There are many reasons for such investors not to invest in stock market. The main reasons for the customer not to invest in stock markets are

1. Lack of awareness 2. High risk 3. High uncertainty 4. Lack of knowledge 5. High rate of fluctuations

5.2 MY LEARNINGS

To get initial success in this field is very difficult. Although the business generation becomes easier with time as we serve more people who then get added up in the loyal clientage. Thus time and service are two most factors in his field.

Also the corporate remains a very important segment which gets business in bulk but retail cannot be ignored which makes your business ticking.

Apart from the assigned roles and responsibilities, the center manager facilitated me with a training which covers the product details of Reliance money, and how they are cheaper than other broking agencies, about their corporate culture, organizational structure, sales methodology, tele-calling, application handling, grievances handling with respect to aggressive customers, etc.

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Regarding customer handling, they provide me with a database for cold call. As it is my first experience in tele calling, I got tense due to the harsh responses. Later by realizing the responses from the prospective lead calls boost my confidence in tele calling.

BIBLIOGRAPHY

Books Referred:

C R Kothari, Research Methodology,1st edition, New Age International Publishers, ISBN: 978-81-224-1522-3

Malhotra, Naresh "Marketing Research and Applied Orientation" IV Ed., 2005, Pearson

Agarwal, J.D. "Security Analysis & Portfolio Management: A Review, Finance India, Vol. II No. 1, March 1989.

Websites:

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y y y y y y y y

www.reliancemoney.com www.nseindia.com www.bseindia.com www.moneycontrol.com www.religare.in www.karvy.com www.angelbroking.com www.nsdl.co.in

ANNEXURE-A1:

QUESTIONNAIRE Name Address : ___________________________________________________ : ___________________________________________________ ___________________________________________________ Occupation Sex Telephone Date : _______________________________ : _______________________ : _______________________ : _______________________

Q.1: Are you interested in investment? (a) Yes (b) No

Q.2: What percentage of your annual income you can keep for investment? (a) Upto 5% 50

(b) Upto 10% (c) Upto 15% (d) Upto 20% (e) Above 25%

Q.3: In which category of income you will describe yourself? (a) Lower income group (b) Middle income group (c) Higher income group

Q.4: Are you dealing or interested in dealing with any security? (a) Yes (b) No Q.5: What type of investment style are you looking for? (a) Bonds & debentures (b) Shares & warrants (c) Mutual funds (d) None of these

Q.6: Do you know about DEMAT a/c? (a) Yes (b) No

Q.7: In your point of view DEMAT A/C is for? (a) Easy in selling securities (b) Purchase in primary market (c) Helps in earn income & also grow money (d) Helps in earn a stable income

Q.8: Do you have a DEMAT a/c? a) Yes

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b) No

Q.9: If yes, then where? (a) Reliance Money (b) ICICI (c) Religare (d) Others (please specify) _____________________ OR If No, then where do you want to open? (a) Reliance Money (b) ICICI (c) Religare (d) Others (please specify) ____________________ Q.10: How frequently you are going to use your DEMAT a/c? (a) Daily (b) Weekly (c) Monthly (d) Yearly

Q. 11: Awareness of Reliance Money and its fecilities? a) Yes b) No

Q.12: Availability of Reliance franchisee for trading purpose a) Easy b) Difficult

Q.13: Satisfaction level among customer with Reliance Money? a) Good b) Average c) Bad

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Q.14: What facilities you like the most in Reliance Money? a) Products b) Communications c) Services

Q.15: Rate Reliance Money Customer Care. a) Good b) Average c) Bad

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